eProcurement Policy and the Competitive Marketplace: An Industry Perspective

Steve Mutkoski
Steve.mutkovski@microsoft.com

eProcurement Policy Challenges

o Industry view: public sector eprocurement raises a number of important issues o Purchasing power: Impact on market (local and global) o Range of goals: More than just about lowest upfront cost o Risk of unintended consequences requires thoughtful approaches

Purchasing Power Aggregation

o Public sector procurement accounts for a substantial part of local economies and the global economy o Ever increasing coordination through eProcurement tools can increase this effect o Can have significant impact on composition of markets and products available o Can have unintended outcomes resulting in less choice and higher cost

Complexity of Public Sector Objectives

o Public sector procurement objectives are diverse and complex o Cost and value for money o But a range of public policy objectives may also be superimposed on this process o It may be difficult to reconcile all of these objectives o Example: SME ability to participate

Trends in the ICT Industry

o New technologies can be disruptive to eProcurement systems o Example: Cloud Computing o Flexible and scalable computing power that is distributed across locations o It will likely change the way governments buy technology: Products to services

E-Procurement Strategic Planning Methodology/Tool

o A reference model which is used to design as well as implement eProcurement systems including their supporting regulatory frameworks, change management requirements, as well as assessing and choosing technologies.
o The planning methodology examines indicators for:
o o o o o
Return on Investment Net Economic Impact National Development Impacts Capacity Impacts Influences on Policy Implementation

Comparison Chart
Value 500.00% 0.00% -500.00% -1000.00% -1500.00% -2000.00% -2500.00%

Evaluate and document the current trends:

o o o
Centralized Purchasing Outsourcing PPP Operations
Architecture

Readiness

Documents observed inhibitors:

o o o o
Regulations Change and Personnel Environmental Technology

Strategic

Risk

EOI Electronic Publishing Vendor Registration Procurement Oversight

Cost

Structured planning from Policy to Technology

Helps decision making and assessment of readiness across categories:
o o Technological Regulatory

o
o

Organizational
Marketplace